Ghana’s mining industry could face severe setbacks if recent tax measures are not reconsidered, the Ghana Chamber of Mines has cautioned.

The Chamber has expressed serious concerns that the new levies, particularly those targeting exploration activities, may deter investment, disrupt ongoing operations, and stall future growth in the sector.

Speaking on Joy News on Thursday, May 22, Ahmed Nantogmah, Acting Chief Executive of the Ghana Chamber of Mines, warned that Ghana’s mining competitiveness is under threat.

He pointed specifically to a 3% levy on gross mineral production and a newly introduced Value Added Tax (VAT) on exploration activities, calling them potentially disastrous for the country’s mining future.

“Exploration is the lifeline of mining,” Nantogmah said. “Now, we have a VAT slapped on exploration. Most explorers are already taking significant risks, and these taxes punish them for it.”

He emphasized that essential exploration functions like drilling and assay are now being taxed, further burdening early-stage ventures that often operate without guaranteed returns.

“Imagine spending $10 million on exploration and discovering nothing—yet you’re still required to pay VAT. That money is simply lost, with no refund,” he lamented.

The Chamber warned that smaller exploration firms, which are the driving force behind greenfield discoveries, are particularly vulnerable. These companies lack the financial resilience to absorb additional taxes and are already shifting operations to more tax-friendly countries such as Côte d’Ivoire and Kenya, where exploration is incentivised, not penalised.

“These are not big multinational firms. They are small, high-risk ventures. That’s why they’re choosing Kenya or Ivory Coast—countries where exploration is not taxed this way,” Nantogmah added.

The Chamber fears that unless the government reconsiders its approach, Ghana will continue to lose out on new mining opportunities and future revenue. The lack of current exploration, Nantogmah explained, could create a gap in future production.

“No exploration today means no new mines tomorrow. The pipeline is drying up, and that’s a serious issue.”